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Dec 31, 2024
KLX Energy Services Q4 2024 Earnings Report
KLX Energy Services reported lower revenue and a wider net loss in Q4 2024 due to seasonal declines and lower activity levels.
Key Takeaways
KLX Energy Services posted Q4 2024 revenue of $165.5 million, reflecting a 12.4% decline compared to the prior quarter. The company reported a net loss of $14.7 million and an adjusted EBITDA of $22.7 million, with a 13.7% adjusted EBITDA margin. Seasonal slowdowns and budget exhaustion impacted activity across segments, but cost control efforts helped maintain profitability in key services.
Q4 2024 revenue declined 12.4% quarter-over-quarter to $165.5 million.
Net loss widened to $14.7 million due to lower activity and seasonal effects.
Adjusted EBITDA came in at $22.7 million, with a 13.7% margin.
Cash and cash equivalents stood at $91.6 million at quarter-end.
KLX Energy Services
KLX Energy Services
KLX Energy Services Revenue by Segment
Revenue by Segment
Rocky Mountains Revenue
CapyFin.comSouthwest Revenue
CapyFin.comNortheast/Mid-Con Revenue
CapyFin.com Forward Guidance
KLX Energy Services expects annual revenue to remain flat or increase slightly in 2025, with an adjusted EBITDA margin between 13% and 15%.
Positive Outlook
- Expected stability in revenue with potential slight growth.
- Projected adjusted EBITDA margin range of 13% to 15%.
- Successful refinancing efforts enhance financial flexibility.
- Increasing demand for natural gas could drive future activity.
- Cost control measures continue to support profitability.
Challenges Ahead
- Seasonal declines may continue to impact Q1 2025 performance.
- Lower rig count and activity levels remain a challenge.
- Net loss has widened compared to the prior year.
- Revenue declines in all key segments.
- Continued pressure from macroeconomic uncertainties.
Revenue & Expenses
Visualization of income flow from segment revenue to net income